Fear Grows in Options Market

Amid growing concerns of an economic slowdown, nervous investors are preparing for the VIX to spike and stocks to fall.

A weaker-than-expected economic report has compelled many skittish investors to prepare for a stock-market decline in the next few weeks.

A surprisingly weak April reading of the Chicago Purchasing Managers Index has investors scrambling to buy calls on the CBOE Volatility Index (VIX) in anticipation the fear gauge will soon rise, and the stock market will edge lower by May 21.